NMDC to be excluded from Nifty CPSE index over move to hive off steel arm

NMDC shares drop 5.3%; ONGC, Coal India and Bharat Electronics likely to see inflows of $31-46 million on account of the rebalancing

Govt to sell up to 7.5% in NMDC via OFS on Tuesday, may get Rs 3,621 cr

ONGC, Coal India and Bharat Electronics (BEL) are expected to see inflows of between $31 million and $46 million on account of the rebalancing.

BS Reporter Mumbai
State-owned miner NMDC will be removed from the Nifty CPSE index following its decision to hive off its steel subsidiary NMDC Steel. The proposal has received shareholder’s approval.

According to an analysis done by IIFL Alternative Research, NMDC, which has nearly 5 per cent weightage in the Nifty CPSE index, could see outflows of over $100 million (nearly Rs 800 crore) on account of its exclusion. No new stock will get added to the index as a result, some of the existing members of the CPSE index will benefit due to the rebalancing.

Also Read: NMDC cuts prices of lump ore, fines by Rs 500/tonne each, stock falls 5%

First Published: Jul 12 2022 | 6:56 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com